Emerging market investors boost Ashmore’s gross flows

Emerging_markets2Investors returning to emerging markets helped Ashmore Group double its gross inflows in the past year.

London-based Ashmore, which specialises in emerging market bonds and equities, saw gross inflows of $14.8 billion (€12.4 billion) in the 12 months ended June 31.

After gross redemptions the net flow was $1.9 billion, but the firm expects to benefit as investors increase emerging market allocations.

Index returns of 24% in emerging market equities and 6% in external debt were seen over the past year, said Mark Coombes, chief executive.

He said investor allocations had seen “brief interruptions” due to events such as the US election, but a “consequent reset” in emerging market prices presented value opportunities for investors, many of whom were underweight the regions.

The highest gross inflows for Ashmore were in blended debt at $4 billion.

Corporate debt saw $2.6 billion of gross inflows; external debt saw $2.2 billion; equities saw $1.1 billion.

External debt and equities inflows were negative on a net basis, unlike corporates and blended, which saw $0.6 billion and $0.7 billion of net inflows, respectively.

Ashmore’s assets under management increased 12% to $58.7 billion.

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